United States Code
USC most recently checked for updates: Jun 09, 2025
§ 80107.
Warranties and liability
(a)
Unless a contrary intention appears, a person negotiating or transferring a bill of lading for value warrants that—
(1)
the bill is genuine;
(2)
the person has the right to transfer the bill and the title to the goods described in the bill;
(3)
the person does not know of a fact that would affect the validity or worth of the bill; and
(4)
the goods are merchantable or fit for a particular purpose when merchantability or fitness would have been implied if the agreement of the parties had been to transfer the goods without a bill of lading.
(b)
A person holding a bill of lading as security for a debt and in good faith demanding or receiving payment of the debt from another person does not warrant by the demand or receipt—
(1)
the genuineness of the bill; or
(2)
the quantity or quality of the goods described in the bill.
(c)
A common carrier issuing a bill of lading, on the face of which is the word “duplicate” or another word indicating that the bill is not an original bill, is liable the same as a person that represents and warrants that the bill is an accurate copy of an original bill properly issued. The carrier is not otherwise liable under the bill.
(d)
Indorsement of a bill of lading does not make the indorser liable for failure of the common carrier or a previous indorser to fulfill its obligations.
cite as: 49 USC 80107
